celanese investor_day_2006_complete_presentation

  • 768 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
768
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
29
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Celanese Investor Day 2006 December 13, 2006 New York 1
  • 2. Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP This presentation may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. When used in this release, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this release. Numerous factors, many of which are beyond the company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Certain of these risk factors are discussed in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. This presentation reflects three performance measures, operating EBITDA, adjusted earnings per share and net debt as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for operating EBITDA is operating profit; for adjusted earnings per share is earnings per common share-diluted; and for net debt is total debt. Operating EBITDA, a measure used by management to measure performance, is defined as operating profit from continuing operations, plus equity in net earnings from affiliates, other income and depreciation and amortization, and further adjusted for other charges and adjustments. Our management believes operating EBITDA is useful to investors because it is one of the primary measures our management uses for its planning and budgeting processes and to monitor and evaluate financial and operating results. Operating EBITDA is not a recognized term under U.S. GAAP and does not purport to be an alternative to operating profit as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Because not all companies use identical calculations, this presentation of operating EBITDA may not be comparable to other similarly titled measures of other companies. Additionally, operating EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements nor does it represent the amount used in our debt covenants. Adjusted earnings per share is a measure used by management to measure performance. It is defined as net earnings (loss) available to common shareholders plus preferred dividends, adjusted for other charges and adjustments, and divided by the number of basic common shares, diluted preferred shares, and options valued using the treasury method. We provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure because a forecast of Other Items is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information. Net debt is defined as total debt less cash and cash equivalents. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company’s capital structure. Our management and credit analysts use net debt to evaluate the company's capital structure and assess credit quality. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information. Free Cash Flow is defined as Cash Flow from Operations less Capital Expenditures. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company’s cash flow. Our management and credit analysts use free cash flow to evaluate the company's liquidity and assess credit quality. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information. 2
  • 3. Investor Day 2006 CEO Update David Weidman President and CEO 3
  • 4. A Leading Global Chemical Company 2006 Revenue1 (est)= $6.7 Billion 2006 Operating EBITDA1 (est)= $1.2 Billion 2006 Adjusted EPS (est)= $2.70 - 2.80 Chemical Acetate Technical Performance Products Products Polymers Ticona Products 2006 Revenue (est): 2006 Revenue (est): 2006 Revenue (est): 2006 Revenue (est): $0.7 B $4.6 B $0.9 B $0.2 B 2006 Op. EBITDA (est): 2006 Op. EBITDA (est): 2006 Op. EBITDA (est): 2006 Op. EBITDA (est): $0.14 B $0.85 B $0.25 B $0.07 B Global #1 Producer in Global #1 Producer in Cash Generator, Global Global #1 Producer2 Our Key Products2 Our Key Products2 #1 Producer2 1 Includes Other Operating Segment, with Revenue (est) of $0.3 B and Operating EBITDA of ($0.1 B) 2Source:Tecnon and SRI. (2005 estimates) 4
  • 5. An Attractive Hybrid Business Model Celanese Commodity Intermediate Specialty Consumer Oil & Gas Chemicals Products Products Products • Dow* • Exxon • Dow* • Rohm & Haas* • Motorola • Eastman* • BP • Lyondell • ICI* • Toyota • PPG* • Shell • Methanex • Sherwin-Williams • FMC* • Siemens Balance of intermediate & specialty products * Celanese internal peer group 5
  • 6. Balanced Global and End Market Positions Paints & Coatings Food and Beverage Textiles 14% 5% 6% Automotive Consumer 9% and Industrial 40% 35% 25% Adhesives 4% Consumer / Medical Construction Applications 8% 11% Chemical Additives Performance Industrial 6% Applications 3% Filter Media Paper & Packaging 9% 14% Other Notes: 11% Includes oxo alcohol and polyol derivative divestiture and pending APL acquisition End use breakdown based on 2006 est. external sales revenue Geographic breakdown based on 2005FY revenue to external customers by destination 6
  • 7. Execution…Growth…Value > Phase I : Successful Transition – 2000 to 2006 = Execute transformation strategy = Growing value > Phase II: Deliver Growth – 2007 to 2010 = Build geographic lead: Increase presence in Asia = Grow downstream specialties: Drive business specific opportunities = Align organization: Better address growth opportunities Continue to create value in excess of the peer group 7
  • 8. Focus and strengthen portfolio… 2000 to 2006 Portfolio Strategy > Invest in specialty businesses > Build strength in differentiated intermediates > Extend the acetyl chain globally > Reduce exposure to non-differentiated, more commodity businesses > Divest non-core business lines Total Revenue Impact1 Acquisitions Divestitures Acquisitions Air Products PVOH Oxo alcohols Vectran Clariant Emulsions Polyol derivatives Emulsion Powders $1.8 B Vinamul Trespaphan DH Actives Acetex Nylon Estech JV Divestitures APL (pending) Acrylates Emulsions Greece PBI COC ($1.8 B) Fuel Cells 1Data from the year in which the transaction occurred 8
  • 9. Focus and strengthen portfolio % Revenue from Products Holding % Revenue from Specialty Businesses #1 or #2 Position 2000 2006E1,2 2000 2006E1 ~95% Nutrinova Total Revenue $6.2 B ~70% Acetate 5%3 Total Revenue Ticona $4.9 B Nutrinova 40% Acetate 33% Ticona 31% Chemical Chemical Products Products 55% 36% Specialty Products Differentiated Intermediates 1Includes oxo alcohol and polyol derivative divestiture and pending APL acquisition 2~95% #1 or #2 with the planned 2007 closure of all Celanese methanol production Non-differentiated Intermediates 3Primarily methanol and formaldehyde revenue 9
  • 10. Productivity on the bottom line Total Employees; EBITDA Celanese Operational 2000-20061 Excellence 1,400 120 > 6-year track record of execution 1,200 100 > Continue capture of Celanese 1,000 specific opportunities Operating EBITDA ($000) % reduction versus yr-end 80 = ~$80 million in additional CE 2000 (ex M&A) 800 specific savings in 2007 60 600 > Ongoing productivity to more 40 than offset inflation 400 > Continuing growth in existing 20 200 assets > Synergies to enable growth 0 0 2000 2001 2002 2003 2004 2005 2006E through future acquisitions EBITDA Number of Employees Relentless productivity improvements 1Excludes oxo alcohol and polyol derivative divestiture and pending APL acquisition Note: EBITDA references are Operating EBITDA, as defined by the Company, unless otherwise noted 10
  • 11. Significantly improved earnings profile since 2000 Operating EBITDA Growth1 ~1,200 2000 – 2006E ($MM) 40-45 110-115 90-95 125-130 300-310 528 Cost Increase in Portfolio 2006E Baseline 2000 Volume Margin Reduction net Earnings from Optimization of Inflation Affiliates Based on Celanese estimates 1Excludes oxo alcohol and polyol derivative divestiture and pending APL acquisition All numbers are based on CE estimates 11
  • 12. Enterprise value growth leads peer group Celanese Enterprise Value Growth Enterprise Value Growth 2000 – 2006YTD Debt and Market 2000 – 2006YTD CAGR Capitalization 22% 8.0 $6.9 B 7.0 CE: 18% CAGR 18% 6.0 14% 2000-2006 EV CAGR 2000-2006 EV ($ B) 5.0 10% 4.0 6% 3.0 $2.5 B 2% 2.0 -2% 1.0 0.0 -6% ICI Eastman Dow PPG Rohm FMC Celanese YE 2000 Current and Market Capitalization Debt Haas Track record of growing value Equity value as of December 8, 2006. Source: Thompson Financial; Company 10Ks 12
  • 13. Execution…Growth…Value > Phase I : Successful Transition – 2000 to 2006 = Execute transformation strategy = Growing Value > Phase II: Deliver Growth – 2007 to 2010 = Build geographic lead: Increase presence in Asia = Grow downstream specialties: Drive business specific opportunities = Align organization: Better address growth opportunities Continue to grow value in excess of the peer group 13
  • 14. 2007 – 2010: Celanese Earnings Growth Strategy Celanese 2010 Objective: $300-$350 million EBITDA Growth Balance Operational Business Specific Asia Sheet Excellence >Nanjing >Evaluate >Productivity Revitalization Innovation Organic Complex capital improvements structure more than offset >Affiliates opportunities inflation > Ticona – new >Acetyls – >Acetate products and continued >Emulsions applications greater than market growth in Acetic Acid and VAM $300 - $350 million in additional EBITDA growth 14
  • 15. Asia: Enhancing Celanese’s geographic lead 2010E Regional Split 2006E Regional Split Europe Europe Revenue Revenue Asia Asia 30-35% 25% Americas Americas Europe Europe Earnings Earnings Asia Asia 45-55% ~30% Americas Americas Approximately 50% of earnings from the fastest growing region *Based on Celanese 2005 consolidated net sales (does not include sales from equity and cost investments). 15
  • 16. Revitalization and acquisition: Acetate drives earnings growth Acetate Operating EBITDA Impact Underway: Acetate 2004 – 2008E > Continue earnings growth through 2008/2009 $250 th ow > Integrate Acetate Products r G s ing Limited (APL) arn $200 E Initiated: Emulsions/PVOH % 00 >1 > Enhance customer and regional $ MM $220 - focus $150 230MM > Reduce product complexity > Drive significant productivity $100 improvement through operational excellence $50 Ongoing: Performance Products 2004 2005 2006E 2007E 2008E > Support customer formulation 1 2 3 development in new products Acetate Seg. EBITDA JV Dividends APL Revitalization opportunities in other businesses 1 EBITDA as reported excluding special charges, Restructuring in Operations, Other charges. 2 JV dividends from cost investments 3Acquisition Pending 16
  • 17. Application and Customer Innovation: Ticona to drive >2x GDP growth Ticona Drive >2x GDP Growth through 2010 Operating EBITDA Growth > Translation of existing polymers to new 2007-2010 markets >$350 MM > Continued Affiliate growth > Innovation and new product development ~$250 MM > Polymer modifications 2010 EBITDA Profile > Accelerating growth in non-automotive 2006E applications EBITDA > Increase automotive market share and pounds per vehicle EBITDA profile increase by ≥ $100 MM by 2010 17
  • 18. Organic growth: Acetyls continued success Celanese Acetic Acid and Vinyl Acetate > Favorable industry dynamics Normalized Growth1996-2008E through 2009 200 180 > Historical “market-plus” growth 160 continues 140 120 > Commercial production from 100 Nanjing begins in 2007 80 60 = $600 - $700 million 1996 1998 2000 2002 2004 2006E 2008E increased revenues from the Acetic Acid VAM GDP Nanjing complex by 2010 Celanese Acetic Acid : 5.1% (6.3%1) Growth CAGR = >$500 million from Acetyls Market Acetic Acid2: 4.6% > Translate vinyl-based emulsions Celanese VAM: 4.4% (5.3%1) success to growing Asian Market VAM2: 3.5% market 1996 – 2008E Global GDP3: 3.1% 1Including the Acetex acquisition 2Source: Tecnon 3Source: CMAI 18
  • 19. Operational Excellence: more than offset inflation Overall Company Productivity1 $ millions (year-over-year cost savings) average fixed cost inflation 2001 2002 2003 2004 2005 2006E 2007 Target Fixed cost reduction Variable and energy improvement Goal for 2007 and beyond: more than offset inflation 1Does not include productivity from divested businesses 19
  • 20. Realigning the businesses to accelerate growth Building Block Differentiated Intermediates Specialty Products Advanced Engineered Engineered Formaldehyde Plastics Materials (AEM) Raw Materials Acetate Anhydride and esters Nutrinova Acetic Acid VAM Emulsions Legend Chemicals Ticona Consumer and Acetyl Acetate Industrial Nutrinova Intermediates Specialties (CIS) 20
  • 21. New organizational alignment 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 Acetyl Consumer and Industrial Advanced Engineered Intermediates Specialties Materials 2006 Revenue (est): $2.9 billion 2006 Revenue (est): $2.2 billion 2006 Revenue (est): $0.9 billion 2006 Op. EBITDA Margin (est.): ~23%3 2006 Op. EBITDA Margin (est.): ~29%3 2006 Op. EBITDA Margin (est.): ~16% Acetic Acid Ticona and Affiliates Acetate and Industrial Performance Vinyl Acetate Products Affiliates Specialties Acetic Anhydride Other Acetyl Derivatives Emulsions IBN Sina Affiliate PVOH AT Plastics Oxo Alcohol Divestiture 2006 Revenue (est): $0.7 billion 2006 Op. EBITDA Margin (est.): ~10% Increased focus on each business’ growth opportunities 1Includesoxo alcohol and polyol derivative divestiture and excludes pending APL acquisition 2Does not include Other Operating Segment and Intersegment eliminations 3Does not include the additional proportional EBITDA from equity affiliates 21
  • 22. Celanese: Well positioned for growth Primary Growth Focus Balance Operational Group Asia Revitalization Innovation Organic Sheet Excellence Consumer and X X X X Operating EBITDA Industrial Specialties Advanced X X X X Engineered Materials Acetyl X X X Intermediates Celanese EPS X Corporate $300 – $350 million in additional EBITDA plus EPS potential by 2010 22
  • 23. Consumer and Industrial Specialties Doug Madden President, Celanese Acetate, AT Plastics, Emulsions & PVOH 23
  • 24. Consumer and Industrial Specialties Group 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 Advanced Engineered Acetyl Consumer and Industrial Materials Intermediates Specialties 2006 Revenue (est): $0.9 B 2006 Revenue (est): $2.9 B 2006 Revenue (est): $2.2B 2006 Op. EBITDA Margin(est.):~29%3 2006 Op. EBITDA Margin (est.): ~23%3 2006 Op. EBITDA Margin (est.): ~16% Performance Products Industrial Specialties Acetate and Affiliates 2006 Revenue (est): $1.3 B 2006 Revenue (est): $0.2 B 2006 Revenue (est): $0.7 B 2006 Op. EBITDA Margin (est.): ~10% 2006 Op. EBITDA Margin (est): ~38% 2006 Op. EBITDA Margin (est.): ~22% Emulsions Oxo Alcohol Divestiture PVOH 2006 Revenue (est): $0.7 B AT Plastics 2006 Op. EBITDA Margin (est.): ~10% Increased focus on each business’ growth opportunities 1Includesoxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment 3Does not include the additional proportional EBITDA from equity affiliates 24
  • 25. Consumer and Industrial Specialties: A significant opportunity > Consumer and Industrial Specialties background > Proven track record of revitalization and growth in Acetate > Growth and innovation opportunity in Industrial Specialties > Successful life-cycle management in Nutrinova 25
  • 26. Similar business dynamics and earnings growth opportunities 2006E Pro-forma Revenue ► Over 1/3 of total Celanese $6.0B1,2 revenue Acetyl ► All specialty derivatives of Intermediates Acetyl Intermediates Industrial Specialties ► Businesses less sensitive to economic cycles ► Similar consumer / end use dynamics Performance Products ► Stable cash generation Acetate ► Earnings growth through Advanced revitalization and Engineered innovation Materials 1Includes oxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment 26
  • 27. Aligned to deliver on unmet customer needs Competitive Key Trends CIS Group Differentiator Paints, Coatings & Adhesives (Emulsions/PVOH) > Strong growth in developing markets Industrial Global footprint, > Low VOC requirements Specialties Innovation > Continued growth in convenience items (non-wovens) Food & Beverage (Nutrinova) ≥ Multiple reduced-sugar product offerings Product quality, Performance manufacturing ≥ Blending of sweeteners and flavors to Products enhance taste excellence Filter Media (Acetate) ≥ Strong tobacco growth in Asia Global footprint, Acetate low-cost ≥ Increasing filter length and filter design manufacturing Tailoring innovative solutions 27
  • 28. Major Structural Changes to the Businesses Completed China APL acquisition venture tow announced expansions Launched Acetate Commenced Revitalization construction of Acquired Air Acquired Acquired AT Emulsion plants Products PVOH Vinamul Plastics in China 1999 2006 Divested Acquired Revenue 1999: Revenue 2006: Exited Acetate Emulsion Clariant $1.1B $2.2B Filament Powders Emulsions Improved product portfolio Built the #1 global vinyl-based emulsions business Extended global reach 28
  • 29. Acetate: Revitalization continues to deliver earnings growth 2008 2009 2002 2003 2004 2005 2006 2007 Timeframe > Historical = Modest cash generation > Restructuring/Repositioning = China venture tow expansions Complete = Filament exit / site optimization Complete > Beyond 2007 = Maximize cash generation = Selective & sustainable growth = China venture flake expansion > APL Acquisition (pending) = Integrate the business = Capture synergies 29
  • 30. Acetate Products Limited (APL): A strategic fit Financial Impact Strategic Impact > Acquisition amount: $~110MM1, > Broader customer mix and reach debt free, includes working capital > Brings Flake integration in Europe > 2005E revenue: ~$230MM1 > Adds film business > EBITDA margin: high single digit - > Increases Acetyl internal low double digit historically consumption > Significant synergies expected Improved Operations Footprint North America Europe China Ventures North America Europe 2007E 2007E 2005 to 2007E 2005 2005 Flake 2 sites 1 site Expanded 4 sites 0 sites Tow 2 sites 3 sites Expanded 3 sites 1 site Specialty Film na. 1 site na. na. na. Filament Fully exited na. na. 2 sites na. 1Assumes GBP= $1.87 30
  • 31. Acetate: Uniquely positioned in Asia, particularly China Dividends from China Ventures > Region with largest demand $MM = China represents 30% of $32 global tow market $30 > Above average growth = Tow growth projected at 2- $21 3% per year in China versus 1-2% in NA/EU > Extending leadership = All expansions on-stream early 2007 $2 = Evaluating next stage opportunities 2005 2006E 2007E 2008E Tremendous growth in earnings and cash flow Source: Celanese Estimates 31
  • 32. Acetate: Strong earnings growth continues Consolidated Revenue, $MM $250 $830- t men 870 rove $700 imp $200 % 0 >10 2004 2008E $MM $150 $220 – $230 MM $100 $50 2004 2005 2006E 2007E 2008E Segment EBITDA1 JV Dividends2 APL 3 1 EBITDA as reported excluding special charges, Restructuring in Operations, Other charges. 2 JV dividends from cost investments 3Acquisition Pending 32
  • 33. Industrial specialties: building a premier franchise Looking Ahead: Positioned via Acquisition: Realizing the Potential $200 MM to $1,050 MM ► Continuous improvement - Sales 2006E in MM$ 1.200 selective revitalization 1.000 opportunities 800 ► Technology - Market Driven 600 Innovation 400 ► Globalizing -Translating VAE 200 0 Success to Asia PVOH ('99) Clariant Vinamul Acquired ('02) ('05) business base Invested, Developed, Became Leader ► # 1 vinyl emulsions producer ► New product introduction ► Optimized R&D centers Incremental EBITDA opportunity of ~$50MM 33
  • 34. Optimize / revitalize Industrial Specialties for growth and productivity 2007 2008 2009 Focus on Marketplace Interface Innovation > Enhance customer focus > Consolidate sites/ capability > Reduce complexity > Accelerate Six Sigma Focus on Operational Excellence Controllables > Capture productivity gains > Consolidate operations > Streamline supply chain > Standardize processes, redesign workflows 34
  • 35. Translating Vinyl Acetate success to Asia Global Latex Emulsions Market1 2.0 Why China and Why Vinyls? 1.8 1.8 > Demand in China growing at 1.6 >10% Regional Size (B tonnes) 1.3 1.4 > Diverse end-market 1.2 segments 1.0 > Good value proposition 0.7 0.8 versus competitive systems 0.6 > Meets low VOC requirements 0.4 0.2 0.0 US Europe China Vinyls 100% acrylic Styrene acrylics 1Excludes SBR, other minor latexes & powders Source: Kline Synthetic Latex Polymers Market Analysis Europe 2005, North America 2004 and China 2006 35
  • 36. Translating Vinyl Acetate success to Asia VAE Case Study Global VAE Volume 300 Celanese Advantages in VAE 250 > Formulation expertise 200 > Technological superiority kt 150 > Monomer integration 100 ~50% ~25% > Local production assets 50 > Celanese Nanjing VAE 0 plant close to demand USA Europe China 2005 Celanese Share of Sales1 2010 projected China 2010 projected Celanese China Well positioned to drive VAE growth in China 1 Kline Synthetic Latex Polymers Market Analysis Europe 2005, North America 2004 and China 2006 36
  • 37. Stable earnings and cash flow from Performance Products (Nutrinova) > Food ingredient business: = High intensity sweetener Sunett® End-Use Applications (Sunett®) = Food protection ingredients (Sorbates) Confections/ Gums Beverages > Blends with flavors/other sweeteners drive penetration 15% 74% > Leading global position with key customers: 11% = Coca Cola, Wrigley, Pepsi, Kraft, Other Cadbury (Adams / Schweppes) 37
  • 38. Consumer and Industrial Specialties Delivering Sustainable Earnings Improvement ≥ $450 MM s factor s ucces S ~$350 MM Achieve ≥ $ 100mm in Earnings Growth > Acetate – Revitalization, China growth and APL acquisition 2010 2006E EBITDA > Emulsions/PVOH – Technology, substitution, growth regions EBITDA Profile > Nutrinova – Grow volumes, formulation development > Collectively – Attractive, Growing and Profitable EBITDA profile increases ≥$100 MM by 2010 38
  • 39. Advanced Engineered Materials Lyndon Cole Executive Vice President & President Ticona 39
  • 40. New organizational alignment 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 Advanced Engineered Acetyl Consumer and Industrial Intermediates Specialties Materials 2006 Revenue (est): $2.9 B 2006 Revenue (est): $2.2 B 2006 Revenue (est): $0.9 B 2006 Op. EBITDA Margin (est.): ~23%3 2006 Op. EBITDA Margin (est.): ~16% 2006 Op. EBITDA Margin (est.): ~29%3 Acetate and Industrial Performance Ticona and Affiliates Products Affiliates Specialties Oxo Alcohol Divestiture 2006 Revenue (est): $0.7 B 2006 Op. EBITDA Margin (est.): ~10% Increased focus on each business’ growth opportunities 1Includesoxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment 3Does not include the additional proportional EBITDA from equity affiliates 40
  • 41. Advanced Engineered Materials is well positioned for continued growth > Established track record for profitable growth > Advanced Engineered Materials business model > Growth expectations 41
  • 42. Five-year track record of earnings growth AEM Operating EBITDA1 300 > Substantial volume $30 Operating EBITDA 2001-2006 ($MM) ~$250 growth ($10) 250 $50 > Regional growth $130 200 through affiliates > Cost reductions help 150 to offset margin compression 100 $52 > Portfolio optimization 50 enhances earnings profile 0 2001 Volume Affiliates Margin Net Portfolio 2006E of Cost Optimization Reduction and Currency 1 Data based on estimates 42
  • 43. Substantial margin improvement relative to peer group Normalized AEM and peers‘ EBIT 10.0 Delta Ticona Operating Profit as % of Sales vs. Peers'* 5.3 5.0 Impact of affiliate 0.5 dividends further 0.0 average enhances AEM -0.5 -1.2 performance -5.0 -6.2 -10.0 -12.70 -15.0 2001 2002 2003 2004 2005 9M 2006 Peer group: corresponding segments of BASF, DSM, DuPont, GE Plastics, Solvay Plastics Zero line reflects peers average - all figures restated – Ticona figures 2005 without special items and COC effects 43 Excluding effects from Special Charges and other charges
  • 44. Advanced Engineered Materials is well positioned for continued growth > Established track record for profitable growth > Advanced Engineered Materials business model > Growth expectations 44
  • 45. Focus on High Performance Polymers and Thermoplastics Global High Performance Polymer and Engineering Thermoplastics 2006E: ~8 MM tons (2006E Growth = 6 %) € 100 / kg High Performance Polymers (HPP) € 10 / kg 4% Engineering Thermoplastics (ETP) € 3 / kg Performance others = 3 % Standard Polymers 96 % PU = 6 % PET = 5 % ABS, SAN, ASA: 4 % € 1 / kg PVC = 17 % PS, EPS = 9 % PE = 34 % PP = 19 % Range of Products Comprising: PA 6 & PA 66, PA 11 and PA 12, PC, POM, PBT, COPE, PET technical, PPE, COC & COP, UHMW-PE, PPS, LCP, High Performance Nylons, PEEK, PEI, PES & PSU, PTFE & other fluoropolymers 45
  • 46. Strong product portfolio Product #1 or Transportation Electrical Consumer Industrial Medical #2 & & Electronics Appliance Hostaform® X X X X (Polyacetals) GUR® X X X (Ultra-high molecular weight PE) Celanex® X X X X (Polyester Engineering Resins) Vectra® X X X (Liquid Crystal Polymer) Celstran® X X (Long fiber reinforced thermoplastics) Fortron® X X X (Polyphenylensulfide) Leading position in > 80 % of sales 46
  • 47. Exposure to a broad range of end-use markets… Revenue by end use market 2006E~ $920MM Other 6% Alternate Medical 5% Transportation Fabrication 47% 12% Electrical & Industrial 10% Electronics 8% Consumer & Appliance 12% …many with growth in excess of global GDP 47
  • 48. Fueling growth with non-automotive applications AEM Non-Automotive Revenue Growth 600 ≥ Steady overall growth for 8% CAGR: 500 AEM since 2001 = 6% total revenue CAGR 400 Revenue ($MM) ≥ Non-automotive growth is the key driver 300 = 8% CAGR in non- automotive sales since 200 2001 100 ≥ Increased diversity to end- use markets 0 2001 2002 2003 2004 2005 2006E % Non-Automotive Revenue 47% 53% 48
  • 49. Supporting customer growth with global facilities 2006E Sales by Region Asia/Pacific America 50 % 25 % Europe 25% Note: Regional split refers to Ticona sales + Polyplastics sales 49
  • 50. Continuous investment in our global franchises > Core Investments > Affiliate Investments = Increased POM capacity at = Finalized POM capacity in Kelsterbach and Bishop Nantong = Doubled LCP capacity in Shelby = Investing in the largest global PPS plant at Wilmington = Will build a new 20 kt GUR (Fortron Industries) plant in China by 2008 Ticona Core EBITDA Growth1 Affiliate EBITDA Growth2 AEM Equity earnings and dividends 250 60 50 200 EBITDA* ($MM) 40 150 ($MM) 30 100 20 50 10 0 0 2001 2002 2003 2004 2005 2006E 2001 2002 2003 2004 2005 2006E 1 EBITDA as 2 Does not include proportional EBITDA from reported excluding equity earnings and dividends affiliates 50
  • 51. Advanced Engineered Materials is well positioned for continued growth > Established track record for profitable growth > Advanced Engineered Materials business model > Growth expectations 51
  • 52. Comprehensive Approach to Growth Development Process > Polymer modification > Innovation > New polymers for > New product development new existing applications / replacing of competing substrates AEM Products Regional Customer Employees Positioning Relationship > Penetration into existing >Translate existing polymers markets and end-users to new markets existing > Regional growth > Increasing market share and pounds per vehicle existing new Markets 52
  • 53. Well represented in fastest-growth region of the world 2005: 8,100 kt 2010: 10,900 kt Other Global CAGR: 6.2% Other Europe Europe 4% 4% 32% Asia without 30% North Japan 4% 1% America 35% Asia without Europe 3% 2% Japan 31% Asia NA NA without 7% 1% Japan 23% 22% Japan Japan 9% 10% 2005 Regional Exposure Asia Rest of World AEM 50% 50% Market 40% 60% Source: Global Insight, May 2006; SRI Thermoplastics Outlook 2005; Top Right ETP 2005; CE estimates; AMI EU 2005; Freedonia ETP in NA 2006 53
  • 54. Development Processes: Foundation of Performance Business Technology Plan > Reduce innovation > Sets 3-5 year objectives cycle time > Innovation roadmap Gate Process > Improve quality and marketability of products >Minimize > Defines new product development process development risk > Identifies critical issues > Improve efficiency of Six Sigma (DFSS/DMIAC/Lean) development > Tools to resolve critical issues / improve streamline process Processes add rigor to optimize and shorten development cycle 54
  • 55. Accelerating growth with close customer relationships > Key Drivers Development Pipeline since 2004 (Value of customer-driven projects in the pipeline) = Growth Platforms 1.6 = Advanced Acetal 1.4 40% = Advanced High 1.2 Increase Normalized Value Temperature Resins 1.0 0.8 > Translation and application 0.6 development – non Growth platforms 0.4 automotive initiated 0.2 > Continued automotive 0.0 application innovation 4Q 04 1Q 05 2Q 05 3Q 05 3Q 06 2Q 06 4Q 05 1Q 06 Pipeline value has increased 40% since 2004 55
  • 56. AEM products positioned to meet evolving market requirements Safety Fuel Efficiency AEM product Requirements advantages ≥ Safety ≥ Media resistance = Active Safety Systems ≥ Low moisture Light weight – Sensors enable absorption = Intelligent Award winning Intelligent Transportation ≥ Heat distortion Systems Celstran® Large Parts Transportation Systems ≥ High impact ≥ Environmental strength = Energy Efficiency Energy Efficiency = Fuel Efficiency ≥ Excellent creep = Weight strength Reduction ≥ Electrical and die- ≥ Automation, electrical behavior convenience LED in cars – less energy for more comfort and safety 56
  • 57. Automotive Volume Growth Advanced Engineered Materials Advanced Engineered Materials type of resins in lbs per vehicle Sales Volume (metric tons) 2001 Asia1 6 12 2006E North America 2010E 18 Europe Highest 40 Current 2001 2002 2003 2004 2005 2006E Well positioned regionally and increasing penetration per vehicle 1Including affiliates Polyplastics / excluding Kepco and Fortron 57
  • 58. Accelerated growth in non- automotive applications LED applications in Automotive, LED Residential, Public Areas “Hot-Spots” in the kitchen – Cookware Industrial and private cooling devices Filters for Water filtration and Industrial Air pollution Dosage Systems, Tele-Medicine, Medical Surgical devices, Sterile Packaging Performance Fibers for Ballistics, Safety Protection, Engineering ropes Non-Automotive sensors, Lithium-Ion Various Batteries, Electric Shielding Applications 58
  • 59. Incremental growth opportunity : LED Global LED shipments in $ MM > Innovative applications for 12,000 entire portfolio 10,000 > Use up to 90% less energy than R AG %C current technologies 14 8,000 > Reduce carbon emission by ~200 MM tons 6,000 > 10x to 100x longer lifetime than traditional bulb technologies 4,000 > More reliable - no moving parts 2,000 > Less disposable waste materials 0 2005 2006E 2007E 2008E 2009E 2010E 2011E 59
  • 60. Incremental growth opportunity: well positioned to capture global sensor growth World Sensor Demand 90 80 70 60 Process Management Chemical Plant $ billion 50 & Control Systems Management & Control 40 30 20 10 0 Home Electronics and Household Appliances 1995 2000 2005 2010E 2015E Security Systems & Electronics US WE Japan Asia/Pacific ROW Robotics for Home Airline Industry Military Consumer & and Industry Appliances 10% Asia and 6% global annual growth continues through 2010 60
  • 61. ≥2x GDP Growth through 2010 $350 MM ≥ ~$250 MM Achieve >2X GDP growth through: > Innovation and new product development $52 MM > Translation of existing polymers to new markets > Polymer modifications > Current market penetration 2001 2006E 2010 EBITDA EBITDA EBITDA Profile EBITDA profile increase by ≥ $100 MM by 2010 61
  • 62. Opening markets with new applications and offerings Expanding Products - Expanding Expanding New Offerings Functionality Opportunity > Large and small > Improved melt strength Focus on Polymer Chemistry appliances > Improved impact properties > Safety systems > Toughness > Portable > Improved chemical resistance water/irrigation > Expanded processability > Gears > Higher service temperatures > Transportation power systems > Improved surface properties > Fuel systems 2010 and beyond: new offerings enable market growth greater than 2x GDP 62
  • 63. Acetyl Intermediates John O’Dwyer President, Acetyl Intermediates, Celanese Asia 63
  • 64. Acetyl Intermediates 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 Consumer and Industrial Advanced Engineered Acetyl Intermediates Specialties Materials 2006 Revenue (est): $2.9 B 2006 Revenue (est): $2.2 B 2006 Revenue (est): $0.9 B 2006 Op. EBITDA Margin (est.): ~23%3 2006 Op. EBITDA Margin (est.):~29%3 2006 Op. EBITDA Margin (est.): ~16% Global #1 Producer4 Acetate and Industrial Performance Products Affiliates Specialties Acetic Acid Vinyl Acetate Acetic Anhydride Other Acetyl Derivatives Ibn Sina Affiliate Methanol (to be shut down in 2007) Oxo Alcohol Divestiture 2006 Revenue (est): $0.7 B 2006 Op. EBITDA Margin (est.): ~10% 1Includesoxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment 3Does not include the additional proportional EBITDA from equity affiliates 4Source:Tecnon and SRI. (2005 estimates) 64
  • 65. Acetyl Intermediates – An Enviable Franchise > Differentiated intermediate business > Continued strong industry dynamics > Celanese advantages: significant and growing 65
  • 66. Acetyl Intermediates – An Enviable Franchise > Differentiated intermediate business = Favorable industry structure remains = Above GDP growth > Continued strong industry dynamics > Celanese advantages: significant and growing 66
  • 67. Celanese is a leader in an advantaged industry vs. Acetyls Ethylene Advantage > Steep cost curve > Relatively flat within a region Cost Curve > Acetyls > CE capital efficiency > Attractive > Fragmented Industry > Acetyls Top 2: >50% of global market1 Top 2: ~15% of global Structure market Technology > Acetyls > Top technology not licensed > Readily available Asset > Close to customer > Feedstock dependent > Acetyls Location > Overcapacity by 2008 > Good outlook through at least > Acetyls New Capacity 2009 Acetyls: differentiated and less cyclical versus mainstream commodities 1Source: Tecnon 2006 67
  • 68. Favorable industry structure Acetic Acid VAM Others Other Celanese Celanese Kuraray 19% 29% 25% 26% 2% Showa 3% Daicel Gohsei Nanjing Nanjing 3% 3% 6% 4% BP Eastman Dairen 5% 3% 11% BP DuPont 23% Lyondell 6% Sopo Millennium Dow Sinopec 5% 6% 6% 8% 7% > Global Leader > Global Leader > GDP+ 1-2% growth > GDP+ growth > Well structured Industry > Top 4 suppliers own >50% of the global capacity1 > Top 2 suppliers own >50% of the global capacity1 Celanese: Integrated leader in Acetyls 1Source: Tecnon 2006 68
  • 69. Market growth in excess of global GDP- Celanese growth in excess of the market Celanese Acetic Acid Indexed Growth Celanese VAM Indexed Growth 1996-2008E 1996-2008E 250 Indexed Acetic Acid Growth kta (1996 = 100) 200 Indexed Vinyl Acetate Growth kta 200 150 (1996 = 100) 150 100 100 50 50 0 0 96 97 98 99 00 01 02 03 04 20 5 20 E 20 E E 96 97 98 99 00 01 02 03 04 20 5 20 E 20 E E 0 06 07 08 0 06 07 08 19 19 19 19 20 20 20 20 20 20 19 19 19 19 20 20 20 20 20 20 Global GDP1: 3.1% Celanese VAM Growth CAGR: 5.3%2 Celanese Acetic Acid Growth CAGR: 6.3%2 Excluding Acetex acquisition: 4.4% Excluding Acetex acquisition: 5.1% Market VAM Growth CAGR3: 3.5% Market Acetic Acid Growth CAGR3: 4.6% 1Source: CMAI, 1996-2008 average 2Includes Acetex and Nanjing volume 3Source: Tecnon 3Q 2006 69
  • 70. Acetyl Intermediates – An Enviable Franchise > Differentiated intermediate business > Continued strong industry dynamics = Increased demand = Supply follows demand improvements > Celanese advantages: significant and growing 70
  • 71. High utilization rates continue through 2009 Acetic Acid Supply-Demand Balance 12,000 10,000 High Cost Low Cost 8,000 Demand 6,000 KT 4,000 2,000 0 2004 2005 2006E 2007E 2008E 2009E Capacity Utilization1(Nov, 2006): 91% 93% 92% 91% 91% 92% 1Based on effective capacity at 90% of nameplate (Celanese estimate) Source: Available Public Data 71
  • 72. Project delays continue to allow increasing demand to absorb new supply CE Investor Day 2005 Company Capacity Original Date CE Investor Day 2006 Updates Comments Fanavaran 150KT Start 2005 Rumored to have started Commercial Production in July, 2006 commissioning Wujing 200KT Start 2005 No sign of construction Construction under way; Pending Litigation; Startup expected Mid-2007 SOPO 150KT Start 2005 Completed, explosion 3 Operational in 1Q 2006; expansion in days later July, 2006 BP/FPC 300KT Early 2005 December 2005 Commercial Production in 2Q 2006 BP/Yaraco 150KT Early 2005 Operational mid-2005 Commercial Production mid-2005 Lunan 200KT June 2005 Now commercializing Commercial Production in 1Q 2006 Daqing 200KT Late 2006 NA Expected Mid- 2007; replaces high cost capacity BP/Sinopec 500KT Start 2008 Construction not yet Construction not yet begun; begun Expected mid-2009 Sipchem 425KT Start 2008 Website states Q3 2008 Construction not yet begun; Pending Litigation; Expected mid-2009 Hualu Hengsheng 200KT 2009 Expected Late 2009 Expected Late 2009 72
  • 73. Unmatched operating cost advantage - Nanjing widens the advantage 2009E Acetic Acid Cost Curve based on Effective Capacity (kt) High Cost Supply Pampa (under review) Celanese technology Conventional MeOH /CO AO Plus™/Leading By-prod Competition 2,000 0 4,000 6,000 8,000 10,000 12,000 Source: Celanese estimates, available public data 73
  • 74. Significant PTA growth: a key factor in driving >GDP acetic acid market growth PTA Capacity Growth 11% CAGR through 2010 Thousand Tons 60.000 50.000 China 40.000 South/Southeast Asia Northeast Asia 30.000 ME & Africa East Europe 20.000 West Europe 10.000 South America North America 0 1990 1992 1994 1996 1998 2000 2002 2004 2006E 2008E 2010E Source: Tecnon OrbiChem, 2006 74
  • 75. Strong VAM market fundamentals continue through 2009 Vinyl Acetate Supply-Demand Balance 7,000 Effective Capacity Demand 6,000 5,000 4,000 KT Sipchem Celanese 3,000 Saudi Nanjing 300 kta 300 kta 2,000 1,000 0 2004 2005 2006E 2007E 2008E 2009E Capacity Utilization1: 98% 97% 93% 96% 95% 95% 1Based on effective capacity at 94% of nameplate Source: Available Public Data 75
  • 76. Significant opportunity for incremental VAM growth in Asia Use of VAM-based architectural coatings in Asia is lagging the consumption trend in the rest of the world. US ~ 650 kta Europe ~ 750 kta Asia ~ 450 kta Alkyd Urethane Alkyd Alkyd 100% 10% 30% 16% Other 12% Acrylics 1% Other 21% Urethane 1% Urethane 5% 4% Straight Straight Acrylic Vinyl Acrylic Vinyl 26% 19% 11% Vinyl 20% Styrene- Styrene- Styrene- 46% Acrylic Acrylic Acrylic 8% 25% 45% Translate existing technology to the fast-growing Asian market Source: SRI Consulting, Kline Consulting 76
  • 77. Acetyl Intermediates – An Enviable Franchise > Differentiated intermediate business > Continued strong industry dynamics > Celanese advantages: significant and growing = Structural changes = Unsurpassed technology = Earnings stability = Significant organic growth 77
  • 78. Recent structural changes have further increased Acetyl business focus Closure of Final Closure of Advantaged Advantaged Acetaldehyde Based Bishop Acrylates Ethylene Methanol Acetic Acid Unit Methanol Divestiture Contract Contract 2000 2006 Start-up of Closure of Clear Acetex Oxo Alchohol / Singapore Acetic Lake Methanol Acquisition Polyol Derivatives Acid Divestiture Ongoing Portfolio Adjustment Themes Ensure industry-leading conversion costs Improve geographic footprint Upgrade the portfolio Improve feedstock/raw material advantage 78
  • 79. The result: A strong acetyl intermediate portfolio 2006E Revenue = $2.9B1 2000 Revenue = $2.9B Anhydride VAM Acetate Esters Anhydride VAM Other Acetate Esters Derivatives Methanol Other Derivatives Acetic Acid Polyols Methanol2 Acetic Acid Acrylates Oxo Alcohols Specialty Products Differentiated Intermediates Non-differentiated Intermediates > Focused on core products with world class strength: Acetic Acid, Vinyl Acetate and Downstream Derivatives > Reduced product line by 49 (current = 48) with oxo alcohol and polyol derivative divestiture > Integrated businesses with synergies beyond raw materials > Reduced volatility of earnings - not a conventional “commodity chemicals” business 1 Includes oxo alcohol and polyol derivative divestiture 2Methanol production ceases in 2007 79
  • 80. Nanjing: advantaged operating costs and capital efficiency CE Estimates of Acetic Acid CE Estimates of Acetic Acid Manufacturing Costs1 Capital Costs (CIF China) 200 200 150 150 Percent (%) Percent (%) 100 100 50 50 0 0 North America Middle East Nanjing Middle East 2 Nanjing Indexed: China Average Costs = 100% Indexed: China Average Costs = 100% Freight /Duty/ Distribution Variable Costs Fixed Costs Source: External benchmarking, Celanese analysis. 1Raw material pricing based on prevailing regional costs; Celanese estimates 2 Middle East capital costs based on estimates to build similar facility in the Middle East 80
  • 81. Continued improvement to our technology position AO Plus™ – Acetic Acid > Intellectual Property = 647 patents currently in effect globally, additional 530 applications = Actively protecting technology > Commercial Status = AO Plus implemented at the Acetex Pardies site = Nanjing Acetic Acid plant on track for 2007 Vantage Plus™ - VAM > Intellectual Property = Significant operating efficiency expected = 563 patents in effect globally, additional 248 applications > Commercial Status = Vantage Plus technology successful at Cangrejera = Global implementation planned 81
  • 82. Earnings stability from structural improvements and market conditions > Southern Q104 – Q306 Methanol Pricing ($US/ton)1 Methanol 400 contract Q104 – Q306 Basic Chemical Earnings2 > Advantaged 350 European methanol 300 > Significant 250 captive product Earnings ($MM) 200 consumption Jan-2004 Apr-2004 Jul-2004 Oct-2004 Jan-2005 Apr-2005 Jul-2005 Oct-2005 Jan-2006 Apr-2006 Jul-2006 Q104 – Q306 Ethylene Pricing ($US/ton)1 > Producer-type 1,600.00 ethylene 1,400.00 economics 1,200.00 > Ibn Sina dividends 1,000.00 > Global 800.00 purchasing Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 600.00 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 power 400.00 Jan-2004 Apr-2004 Jul-2004 Oct-2004 Jan-2005 Apr-2005 Jul-2005 Oct-2005 Jan-2006 Apr-2006 Jul-2006 > Coal-based North America West Europe Asia Average CO in Nanjing 1Source: CMAI 2Indicates earnings of the businesses as reported. Not a pro forma for Acetyl Intermediates 82
  • 83. Earnings stability and growth from regional diversity France Tarragona Frankfurt Acid = 440 VAM = 200 VAM = 285 VAM = 150 Pampa Anhydride = 30 Nanjing Acid = 290 Acid = 600 Anhydride = 145 VAM = 300 Anhydride = 100 Bay City VAM = 300 Clear Lake Acid = 1,200 VAM = 310 Singapore Cangrejera Acid = 600 VAM = 115 VAM = 210 Anhydride = 90 Under consideration New Locations AMERICAS EUROPE ASIA Acetic Acid 1,490 440 1,200 VAM 725 635 510 All values shown in kt per year 83
  • 84. Acetyls Intermediates: >$500 million of incremental revenues by 2010 >$500MM incremental revenue for Acetyl Intermediates Acetic Acid ~43% Coal based (AO+™) CO 20% Mid-2007 M Acetic e ~37% r Anhydride Vinyl Acetate 100% c Methanol 2H 2008 (VAntage h a Plus™) ~90% n 2008 t ~10% S Emulsions a Ethylene 2H 2007 100% l e s GUR 2H 2008 100% (potential) >$100MM in incremental EBITDA from the Nanjing complex 84
  • 85. Acetyl Intermediates – An Enviable Franchise > Differentiated intermediate business > Continued strong industry dynamics > Celanese advantages: significant and growing Result: > An enhanced global Acetyls leadership position driven by technology, optionality, and incremental growth > Less volatile, more stable earnings with upside potential through 2009 85
  • 86. Global Operational Excellence Integral Part of Celanese Value Proposition Jim Alder VP Operations and Technical 86
  • 87. Global Operational Excellence > Operational Excellence Culture: Recent developments > Nanjing Competitive Advantages: Update 87
  • 88. Strong track record of execution versus peer group EBITDA Margin Improvement vs. Peers EBITDA Margin vs. Initial Peer Group EBITDA Margin vs. Current Peer Group 1000 300 760 750 bps versus 2000 230 bps versus 2004 470 500 400 150 100 250 250 0 0 2001 2002 2003 2004 2005 2006 YTD Initial Peer Group New Peer Group Removed Added R&H Dow Dow Solutia R&H Lyondell Rhodia FMC FMC Eastman Eastman Millennium Lyondell PPG PPG Solutia ICI DSM DSM ICI Rhodia Methanex Methanex Publicly available data, excluding Special Charges and Adjustments 88
  • 89. Growth and productivity are now engrained in the Celanese culture Convergence Finance Redesign Purchasing & Pricing Manufacturing Shared Services Redesigns Beyond Mfg. Division SG&A Redesigns Mfg. Work Practices One SAP Energy Excellence Mfg. Digitization Maintenance Excellence Six Sigma Manufacturing Productivity Productivity Beyond Manufacturing Growth 2001 2002 2003 2004 2005 2006 2007 No longer just projects or initiatives 89
  • 90. Improving safety and environmental performance with commitment to get better > Best-in-class safety performance 2010 Goals 1.0 Injury Rate OSHA Incident Rate Spills / Releases Best-in-class 0.5 Lost Time Injury Rate Air Emissions Best-in-class 0.0 Waste 2004 2005 2006 YTD > Environmental improvements (vs. 2001) = Spills and releases: - >70% Energy = Waste generation: - 32% = Energy efficiency: - 26% 0 20 40 60 80 = Greenhouse gas emissions: - >30% % Reduction versus 2005 Platform for sustainable development 90
  • 91. Breadth and depth in manufacturing productivity improvement 3 100 Cost / Replacement Value (%) Streamline Maintenance Global Headcount % reduction versus yr-end Near best-in-class1 2000 (ex M&A) Investor Day 2005 Investor Day 2005 ~ 40% reduction best-in-class vs. 2000 50 1 2000 2001 2002 2003 2004 2005 2006 2000 2001 2002 2003 2004 2005 2006 YTD YTD 100 100 Improve Reliability Energy Efficiency % Mechanical Availability % reduction versus 2001 Investor Day 2005 Sustained (usage per pound) best-in-class1 Investor Day 2005 best-in-class 26% usage reduction vs. 20011 97 70 2000 2001 2002 2003 2004 2005 2006 1H 2H 1H 2H 1H 2H 1H YTD 2003 2003 2004 2004 2005 2005 2006 1 Data for Chemicals and Ticona Divisions 91
  • 92. Track record of productivity with fixed cost reduction slightly more than inflation Overall Company Productivity* Specific IPO commitment $ millions (year-over-year cost savings) $400 million target 400 average fixed cost inflation $ millions >SG&A >Purchasing >Acquisitions & synergies = Vinamul and Acetex >Methanol sourcing 0 2001 2002 2003 2004 2005 2006E 2007 2005 2006E 2007 Target Target Fixed cost reduction Variable and energy improvement Will sustain high productivity in 2007 while meeting specific IPO commitment * Does not include productivity from divested businesses 92
  • 93. Realization of synergies enhance acquisitions Achieved high end of 6-8% range presented at 2005 Investor Day > Building capabilities to acquire businesses and increase value Other > Synergies Logistics = 2X initial estimates (3-5% Manufacturing sales) & Technical = Captured 60 % in 2005 / SG&A 2006 ? AO+ implementation in Pardies provides most of remainder Platform for growth through future acquisitions 93
  • 94. Track record of “no / low capital” expansions “No / low capital” expansions “No / low capital” expansions Clear Lake Acetic Acid, 1979 – 2006 Other Celanese products* 1,200 thousands of tpa VAE Emulsions Benefit from AO Plus™ 800 Ticona 400 Operational Excellence driven 0 PPS 1979 1984 1989 1994 1999 2004 Compounding 1994 - 2004 Technology and Operational Excellence driven GUR 1979 - 2004 0 5 10 15 20 0 5 10 15 20 Percent per year Percent per year Platform for growth in existing assets * Per year capacity increase for 1, 2 or 4 years between 2003 & 2006, requiring no or low capital (very small % of replacement value) 94
  • 95. Nanjing: Lowest cost acetyls complex in the world GUR Unit Warehouse Flare (potential) ≥ Integrated complex Vinyl Acetate Acetic Anhydride Unit ≥ Leading technologies Monomer Unit ≥ Advantaged feedstock Acetic ≥ Highly capital efficient Utilities / Acid Tank Farm ≥ EHS excellence Unit Emulsions Complex ≥ Integrated IP protection Administration & Maintenance New announcement / confirmation since Investor Day 2005 Platform for growth in Asia 95
  • 96. Nanjing: Highly integrated complex with leading Celanese technologies Acetic Acid Coal based (AO+™) CO 20% ~43% Mid-2007 M Acetic e ~37% r Anhydride 100% c Methanol Vinyl Acetate 2H 2008 h (VAntage Plus™) a ~90% 2008 n t ~10% S Emulsions a Ethylene 2H 2007 100% l e s GUR 2H 2008 100% (potential) Projected $600 - $700 million in incremental sales by 2010 96
  • 97. Nanjing: Advantaged feedstock position with coal-based CO 1 Coal Gasification ≥ Low Cost = Significant cost advantage > 25% advantage versus natural gas (typical alternative feedstock) Synergies from CO and methanol co-production Coal - water slurry ≥ Reliable = ~50% of the 55 coal gasification units in the world are in China = Redundant critical systems enhance reliability Coal gasification in China: low cost and reliable 1 From William Preston presentation at Gasification Technologies Council in 2001 97
  • 98. Nanjing: Lowest capital acetyls complex in the world Acetic Acid Unit Vinyl Acetate Unit 600 kta 600 kta 210 kta 210 kta Relative capital cost % Relative capital cost % 600 kta For comparison For comparison 300 kta Nanjing Singapore1 2 USGC Nanjing USGC Singapore actual projected 1 2 Actual cost escalated to 2006$ at 3% / year Actual cost escalated to 2007$ at 3% / year Leveraged technology and design improvements plus low cost in China 98
  • 99. Nanjing: Committed to achieving excellence in EHS > Safety = Integrating Celanese standards and culture = No lost time injury to-date (> 3 million man-hours) > Environmental = US or China standards, whichever greater 99
  • 100. Nanjing: Integrated approach to protecting our IP in China Design, Engineering, & Construction ≥ Process design developed outside China Critical Equipment ≥ Selected equipment purchase outside China & Design ≥ Security check on key contractor personnel Hiring Policy & Practices ≥ Criteria includes company specific background ≥ Employment contracts with IP language ≥ 3-5 year bonding of critical employees What is IP? Operation Including Information Control ≥ Separation of jobs, limited rotation ≥ Selected critical lab analyses in Singapore ≥ Biometric access to IP sensitive areas Biometrics Litigation Track Record ≥ 100% success rate ≥ > $100 million recovery (5 lawsuits) ≥ 3 others pending litigation 100
  • 101. Global Operational Excellence is an integral part of Celanese value proposition Operating EBITDA Margin vs. Peers > 6-year track record vs. peers 5.0 > Engrained performance culture 4.0 3.7 3.0 > Well positioned to reach top 2.0 quartile 1.0 = Ongoing productivity 0.1 0.0 = Continuing growth in existing -1.2 -1.0 assets -2.2 -2.0 = Synergies to enable future -3.0 acquisitions 2004 2005 Q3 / YTD Top Quartile Peer Group = Rapid growth in Nanjing Dow R&H Eastman FMC ICI PPG Goal to reach top quartile by 2010: Requires 120 bps annual improvement versus peer group 101
  • 102. Building a Case for Value John J. Gallagher III Executive Vice President & Chief Financial Officer 102
  • 103. Agenda > 2006 Update = Oxo Alcohol/polyol derivatives divestiture = Ownership and Governance Changes = Full-year Guidance > Case for Improved Value Creation = Strong Underlying Results = Value of the Affiliates = Efficient use of cash = Performance Relative to Peer Group 103
  • 104. Oxo-alcohol and polyol derivatives businesses divestiture Oxo-alcohol Divestiture Details - 2006E Celanese Assets E-Oxo Joint Venture (50%-50%) with Degussa Location Oberhausen Bay City Bishop Oberhausen Marl Oxo-alcohols and Esters X X X Polyols X X Olefin Derivatives X X X Sales ($MM) ~$720 ~$700 ~$70 EBITDA ($MM) ~$30 (~$78 including $8MM impact from E-Oxo JV) Net Income ($MM) ~$16 ~$45 (includes impact from E-Oxo JV) (CE portion ~$8MM) Employees 1,100 180 Estimated sale price of €480 million (~$630 million2) 1Net proceeds of ~$450-475MM after charges (60% e-oxo charges, 30% taxes and pensions, 10% personnel and other costs) 2Based on exchange rate of $1.32/€ as of December 11, 2006 104
  • 105. Broader ownership position and independent governance December 12, 2005 Current Private Private Equity, Equity, Other, Other, 15% 60% 40% 85% > Average Daily Volume1 > Average Daily Volume1 385,000 1,333,000 > Value of float2 > Value of float3 $1.1B $3.1B > 11 board members, 4 independent > 11 board members, 6 independent > Majority Blackstone board governance > Majority independent governance Source: SEC filings 1 90-day trailing average volume 2 Based on CE close as of December 12, 2005 3 Based on CE close as of December 8, 2006 105
  • 106. Continued strength in 2006 YTD 2006 FY 2006 Guidance > Adjusted EPS guidance remains at 9 months $2.70 to $2.80/share ended 3rd Qtr 2006 (in $ MM) 9/30/06 = Full-year 2006 at high end of original estimates Sales $1,685 up 10% $5,000 up 11% = Easing raw material costs Adjusted EPS $0.79 $2.23 = Ticona volume growth in Europe Operating $322 up 28% $936 up 17% = Continued strong global demand EBITDA1 for acetyl products > Pro-forma including Oxo alcohol divestiture: $2.45 to $2.55/share 1Does not include ~$75MM YTD of proportional EBITDA from equity affiliates 106
  • 107. Agenda > 2006 Update = Oxo Alcohol/polyol derivatives divestiture = Ownership and Governance Changes = Full-year Guidance > Case for Improved Value Creation = Strong Underlying Results = Value of the Affiliates = Efficient use of cash = Performance Relative to Peer Group 107
  • 108. Strong underlying results continue into 2007 2007 Outlook1 Operating EBITDA 1,400 Adjusted EPS: $2.60 – $2.90 Operating EBITDA: $1,130 – $1,200 million 1,200 2006 Pro-forma R AG Adjusted EPS: $2.45 – $2.55 1,000 C % EBITDA ($MM) 15 > Advanced Engineered Materials: 800 Increase applications and volume > Consumer and Industrial Specialties: 600 Earnings growth from: = Continued Acetate restructuring 400 and APL acquisition impact = Revitalization and growth for 200 Industrial Specialties > Acetyls: Strong supply-demand profile, 0 above market growth continues 2000 2001 2002 2003 2004 2005 2006E > Productivity: Successes continue to Pro-forma impact of oxo alcohol and polyol derivative divestiture more than offset inflation 1Includes oxo alcohol and polyol derivative divestiture 108
  • 109. Affiliates continue to deliver value Equity Affiliates 2006E Additional 2006E Equity Proportional Celanese Affiliate Earnings ($MM) EBITDA($MM) Ownership Celanese Group Fortron Industries $5 50% AEM $15 Korean Eng. Plastics $10 50% AEM $15 $40 AEM $25 Polyplastics 45% Infraserv <50% Acetyl Intermediates $20 $10 $75 TOTAL1 $65 Cost Affiliates Total Celanese 2006E Cash EBITDA Affiliate Ownership Celanese Group Dividends ($MM) from Ibn Sina 25% Acetyl Intermediates $55 Affiliates Acetate China 30-31% CIS $20 Affiliates TOTAL $75 2006E Recognized Operating EBITDA1 = $140MM $215 1Includes impact from E-Oxo JV divestiture (2006 E of $10MM in reported and $20 in proportional equity earnings from E-Oxo) 109
  • 110. Strong cash flow generation continues 2007E1 ($MM) 2006E ($MM) > Operating Cash Flow ~$700 > Operating Cash Flow ~$680 > Capital Expenditures ~($250) > Capital Expenditures ~($280) > Free Cash Flow ~$450 > Free Cash Flow ~$400 Investing Activities ($MM) CAG Squeeze out: ~($80) Pending APL acquisition: ~($110) Oxo alcohol divestiture (net): ~$450-$475 Total ~$260-$285 1Includes oxo alcohol and polyol derivative divestiture and pending APL acquisition 110
  • 111. Efficient use of cash > Invest in our business to fuel growth and increase our technology advantages > Continue to look for bolt-on accretive acquisitions > Evaluate capital structure opportunities = De-leverage balance sheet = Return to shareholders 111
  • 112. Continue to invest in growth and innovation Capital Expenditures Innovation > AEM: Customer-driven new 2006 - 2007 increase driven by Nanjing complex polymers and applications 300 > CIS: Market-driven 1 Capital Expenditures ($ MM) 250 innovation and enhanced customer focus 200 150 > Acetyl Intermediates: Product-driven innovation 100 to expand Acetyl use 50 > Productivity: Process- 0 driven technology 2000- 2005 2006E 2007E Future 2004 avg. improvements Maintanence, EHS Range Revenue Increase, Cost Reduction Depreciation and Amortization 1 Excludes Fraport expenditures. Includes oxo alcohol and polyol derivative divestiture; does not include impact from APL acquisition 112
  • 113. Continue to look for bolt-on acquisitions; leverage strong integration skills Pending APL Acquisition Financial Impact Strategic Impact > Broader customer mix and reach > Acquisition cost: $~110mm1, debt free, includes working capital > Brings Flake integration in Europe > 2005E revenue: ~$230mm1 > Adds film business > EBITDA margin: high single digit - > Increases Acetyl internal low double digit historically consumption >Leverage our skills and capabilities to acquire businesses, successfully integrate and increase value >Identify and capture synergies = Example: Vinamul and Acetex acquisitions captured synergies totaling 8% of revenue2 1Assumes GBP= $1.87 2Based on total revenue at the time of the acquisition 113
  • 114. Frankfurt Airport Settlement > Celanese reached an agreement with Frankfurt airport operator (Fraport) > Fraport will compensate Celanese to relocate Ticona’s Kelsterbach site Year Amount 2006 € 20 million 2008 € 200 million 2009 € 200 million 2010 € 130 million 2011 € 100 million Total € 650 million > Transaction subject to Fraport’s AGM approval and tax neutral treatment > Allows for adequate time to relocate by mid-2011 with no disruption to Ticona’s business > No significant implications on Celanese’s debt covenants/indentures 114
  • 115. Evaluate Capital Structure Opportunities Debt1 Equity1 2006 Total Debt - $3,449 MM $1,613 Weighted Avg. Cost of Debt 8.2% 2006 Dividend Payment $964 $MM $0.16 / share $463 $409 Outstanding Shares2 Senior Credit Senior Discount Notes Other 158.6 MM Basic Facility Subordinated 12.0 MM Preferred Notes Permitted Acquisitions $500M Restricted Restricted Restricted Payments Payments Payments ~$65M ~$360M ~$520M 1 Debt and equity information based on 3Q 2006 actuals 115 2 Does not include option grants
  • 116. Consistent performance with peer group; valuation still trails Peer Comparison Global 2007E P/E 2005 ROTC1 % sales in Asia Multiple2 Presence 15% 12% 14.7 Rohm and Haas 15% 15% 12.7 PPG 24% 10% 14.2 ICI 13.9 Average Celanese 25% 16% 8.5 13% 13% 11.5 FMC 11% 19% 9.8 Dow 13% 17% 13.2 Eastman 11.5 Average Top Quartile Limited Significant Source: Company 10K’s, Celanese analysis 1Source Value Line: Return on Total Capital ((Net Income + ½ long-term interest)/ (shareholder equity plus total debt)) 116 22007 EPS estimates per Thompson financial. Stock price as of December 8, 2006.
  • 117. Valuing Celanese Stock Price based on Celanese 2007 EPS $2.60 – 2.90 P/E Multiple (based on 2007E P/E)1 $36 - 40 14 12 $30-33 10 8 6 $22.992 Current Share price: 4 2 0 P/E Top Half Peer P/E Bottom Half Celanese Group Peer Group > Majority independent board of directors > Strong operating performance continues > Strategic value of affiliates > Efficient use of shareholder cash to drive incremental value Significant shareholder value upside exists for Celanese 117 1 Source: Thompson Financial 2 As of December 8, 2006
  • 118. Appendix 118
  • 119. 2007 Guidance > 2006 Pro forma Adjusted EPS = $2.45 to $2.55 > Adjusted EPS = $2.60 to $2.90 > Operating EBITDA = $1,130 to $1,200 million > Cash Taxes = $180 – 200 million > Capital Expenditure / Depreciation and Amortization = Approximately $280 million > Net cash interest expense = $170-$190 million > Estimated Tax Rate for Adjusted EPS of 28% 119
  • 120. Reg G: Reconciliation of Diluted Adjusted EPS Ta ble 6 Adjuste d Ea rnings Pe r Sha re - Re concilia tion of a Non-U.S. GAAP Me a sure Three Months Ended Nine Months Ended Septem ber 30, Septem ber 30, (in $ m illions, except per share data) 2006 2005 2006 2005 Earnings from continuing operations 77 216 before tax and m inority interests 181 490 N on-GAAP Adjustm ents: Other charges and other adjus tm ents * 40 101 6 41 Refinancing cos ts - 102 - - Adjusted earnings from continuing operations 117 419 before tax and m inority interests 187 531 Incom e tax provis ion on adjus ted earnings ** (28) (102) (47) (143) Minority interes ts (3) (41) (2) (3) Earnings from dis continued operations , net of tax and adjus tm ents *** (2) 6 (2) (3) Preferred dividends (3) (7) (3) (8) 81 275 Adjusted net earnings available to com m on shareholders 133 374 Add back: Preferred dividends 3 7 3 8 Adjusted net earnings for diluted adjusted EPS 136 84 382 282 Diluted shares (m illions) Weighted average s hares outs tanding 158.5 158.5 158.6 158.6 As s um ed convers ion of Preferred Shares 12.0 10.9 12.0 12.0 As s um ed convers ion of s tock options 1.4 0.5 0.6 1.0 Total diluted s hares 171.9 169.9 171.2 171.6 Adjusted EPS from continuing operations 0.80 0.50 2.25 1.62 Earnings per com m on s hare from dis continued operations , net of adjus tm ents 0.04 (0.01) (0.01) (0.02) Adjusted EPS 0.79 0.49 2.23 1.66 * See T able 7 fo r details ** T he U.S. GA A P t ax rat e fo r the three m o nt hs ended Sept em ber 30, 2006 is 40% and nine m o nt hs ended Sept em ber 30, 2006 is 32%. T he c o m pany’ s adjus t ed t ax rat e fo r the three m o nt hs ended Sept em ber 30, 2006 is 25% and t he res ulting year to date adjus ted tax rate is 27%. T he diff erenc e bet ween o ur US GA A P t axes and o ur adjus t ed t axes are due to : (i) the fav o rable im pac t o f purc has e ac c o unt ing o n o ur net o perating lo s s es ($ 23 m illio n), and (ii) the elim inatio n o f dis c rete t ax it em s no t related to t he c urrent perio d ($ 4 m illio n). 120 *** D o es no t inc lude gain o n s ale related to dis c o ntinued o peratio ns .
  • 121. Reg G: Reconciliation of Net Debt Ta ble 5 Ne t De bt - Re concila tion of a Non-U.S. GAAP Me a sure September 30,December 31, (in $ m illions) 2006 2005 Short-term borrowings and current ins tallm ents of long-term debt - third party and affiliates 155 205 Long-term debt 3,282 3,244 Total debt 3,449 3,437 Les s : Cas h and cas h equivalents 390 513 Net Debt 2,936 3,047 121
  • 122. Reg G: Reconciliation of Other Charges and Other Adjustments Ta ble 7 Re concilia tion of Othe r Cha rge s a nd Othe r Adjustme nts Othe r Cha rge s: * Three Months Ended Nine Months Ended September 30, September 30, (in $ m illions) 2006 2005 2006 2005 Em ployee term ination benefits 8 16 - 11 Plant/office clos ures 13 15 - - 21 31 Total restructuring - 11 As s et im pairm ents 1 25 - - Ins urance recoveries as s ociated with plum bing cas es (4) - - (3) Other 37 ** - 2 4 Total - 24 12 89 Othe r Adjustme nts: *** Three Months Ended Nine Months Ended September 30, September 30, (in $ m illions) 2006 2005 2006 2005 Executive s everance & legal cos ts related to Squeeze-Out - - 5 28 Favorable im pact on non-operating foreign exchange pos ition - (14) - - Advis or m onitoring fee - 10 - - Purchas e accounting for inventories 16 16 Bus ines s Optim ization - - 4 4 Other - - (3) (3) 6 16 29 12 Total 6 40 41 101 Total other charges and other adjustments * Previously describ ed as Special Charges ** Termination of advisor monitoring fee 122 *** These items are included in net earnings b ut not included in other charges.
  • 123. 123 Table 1 Se gm e nt Da ta a nd Re concilia tion of Ope ra ting Profit (Loss) to Opera ting EBITDA - a Non-U.S. GAAP Mea sure . Three Months Ended Nine Months Ended September 30, September 30, (in $ m illions) 2006 2005 2006 2005 Ne t Sa le s 1,206 3,558 Chem ical Products 1,091 3,203 230 691 Technical Polym ers Ticona 212 674 171 514 Acetate Products 162 499 41 138 Perform ance Products 46 140 69 198 Other Activities * 55 75 (32) (99) Inters egm ent elim inations (40) (98) Total 1,685 1,526 5,000 4,493 Ope ra ting Profit (Loss) 170 475 Chem ical Products 101 436 37 116 Technical Polym ers Ticona 18 62 23 75 Acetate Products 4 24 10 43 Perform ance Products 13 41 (40) (147) Other Activities * (41) (157) Total 200 95 562 406 Equity Ea rnings a nd Othe r Incom e /(Ex pe nse) ** 22 47 Chem ical Products 36 44 13 42 Technical Polym ers Ticona 15 43 - 21 Acetate Products - 2 - 1 Perform ance Products (2) (2) 11 9 Other Activities * (2) 8 Total 46 47 120 95 Othe r Cha rge s a nd Othe r Adjustme nts *** 3 10 Chem ical Products 19 23 - (4) Technical Polym ers Ticona 4 25 - - Acetate Products 9 10 - - Perform ance Products 1 1 3 35 Other Activities * 7 42 Total 6 40 41 101 De pre cia tion a nd Am ortiza tion Ex pe nse Reg G: Reconciliation of Operating EBITDA 39 118 Chem ical Products 45 118 16 48 Technical Polym ers Ticona 13 42 6 18 Acetate Products 3 21 3 11 Perform ance Products 4 10 6 18 Other Activities * 5 9 Total 70 70 213 200 Ope ra ting EBITDA 234 650 Chem ical Products 201 621 66 202 Technical Polym ers Ticona 50 172 29 114 Acetate Products 16 57 13 55 Perform ance Products 16 50 (20) (85) Other Activities * (31) (98) Total 322 252 936 802 * Other Activities primarily includes corporate selling, general and administrative expenses and the results from AT Plastics and captive insurance companies. ** Includes equity earnings from affiliates and other income/(expense), which is primarily dividends from cost investments. *** Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.
  • 124. Reg G: Reconciliation of 2000 to 2005 Operating EBITDA Total Celanese 2000 2001 2002 2003 2004 2005 GAAP Operating Profit 78 -470 162 133 130 561 Depreciation & Amortization 364 372 300 328 256 286 Special charges & other adjustments 27 472 -1 6 340 57 Equity earnings 18 12 23 39 37 61 Cost dividends 40 41 35 53 38 88 EBITDA as shown 528 427 519 559 801 1053 Ticona 2000 2001 2002 2003 2004 2005 GAAP Operating Profit 90 -13 23 136 19 60 Depreciation & Amortization 69 68 60 63 64 60 Special charges & other adjustments -27 -8 8 -97 67 31 Equity earnings 14 3 15 31 22 48 Cost dividends 2 2 2 2 4 5 EBITDA as shown 147 52 108 134 176 204 Performance Products 2000 2001 2002 2003 2004 2005 GAAP Operating Profit 31 35 50 -49 29 51 Depreciation & Amortization 33 28 7 8 12 13 Special charges & other adjustments 6 4 0 106 20 1 Equity earnings 0 0 0 0 1 0 Cost dividends 0 0 1 1 3 -1 EBITDA as shown 69 67 58 66 65 64 124
  • 125. Peer comparison ranking Global Positioning Equal Exposure to the main regions 35-40% Exposure to one region >40-50% exposure to one region >50-60% exposure to one region Greater than 60% exposure to one region 125